(Adds detail on cash hold-back from unsuccessful bids)
SHANGHAI, June 20 Four mainland Chinese IPOs
drew huge demand after a four-month hiatus on offerings, with
auto parts maker Shanghai Lianming Machinery Co Ltd
attracting interest around 515 times the amount on offer in the
online portion of its sale.
This year saw the resumption of mainland Chinese listings
after a 14 month drought imposed by regulators who were
concerned about overpricing. But after a two month flurry of
activity, no offerings were approved until last week, when seven
firms got the go-ahead.
The four companies raised a total of 1.8 billion yuan ($290
million), according to statements from the firms published on
the Shanghai and Shenzhen stock exchanges.
The deals drew in a combined 380 billion yuan in bids, the
China Securities Journal reported. Most of the unsuccessful bids
will only be returned to the investors on Monday, meaning the
market will see a large inflow of money early next week which
could help sentiment.
Shanghai Lianming Machinery Co Ltd, which will
list on the Shanghai stock exchange, sold 20 million shares at
9.93 yuan a piece. Its IPO price was set at a price-to-earnings
ratio of 13.43 times, compared with an average of 20.81 times
for its listed peers on the Shanghai stock exchange.
The sale was underwritten by China Securities Co Ltd.
The other three were Wuxi Xuelang Environmental Technology
Co Ltd, Shandong Longda Meat Foodstuff Co Ltd and Feitian
Technologies Co Ltd which will list on smaller Shenzhen stock
exchanges and which had oversubscription rates of between 120
and 218 times.
The China Securities Regulatory Commission is planning about
100 IPOs for the rest of this year, bringing the full-year tally
up to 150, about half the number forecast by consultants
($1 = 6.2090 Chinese Yuan Renminbi)
(Reporting by Shanghai Newsroom and Lu Jianxin; Editing by
Kazunori Takada and Stephen Coates)